DraftKings, FanDuel Granted Stay of Preliminary Injunction in New York
News first broke from ESPN’s Darren Rovell that the New York Appellate Court decided to grant DraftKings and FanDuel their motions to stay preliminary injunction pending appeal. The decision was issued Monday January 11, 2016.
DraftKings and FanDuel—industry leaders in daily fantasy sports (DFS) — have been involved in litigation with New York Attorney General Eric Scneiderman since November 2015. In October 2015, Schneiderman sent the companies cease and desist letters, claiming that the companies must terminate business operations in New York because DFS violates state gambling laws. Litigation followed soon thereafter, as the revenue New York offers is too great to abandon.
At the trial court level, Schneiderman successfully obtained preliminary injunctions. The court ordered both companies to cease operations in the state until the overall issue is determined at trial. DraftKings and FanDuel immediately appealed and filed motions requesting a temporary stay of the injunctions until the appeals have finished.
The appellate court granted the stay. DraftKings and FanDuel may therefore continue to accept New Yorkers’ DFS wagers for the time being. There is the possibility, however, that the appellate court may ultimately agree with the trial level and affirm the preliminary injunctions. Only time will tell. Until then, DFS gambling is a go.